Biocompatibles sale to go ahead

MEDICAL devices group Biocompatibles is to push ahead with its plans to sell off most of its products portfolio to US giant Abbott Laboratories despite opposition from some shareholders who claim the assets have been sold too cheaply.

Last month Biocompatibles agreed to sell its innovative business in stents, used to keep coronary patients' damaged arteries open, to Abbott for £139 million in cash plus royalties.

Biocompatibles chief executive Crispin Simon today revealed a 70p-a-share cash return for shareholders, with the prospect of another payout from the sale of other medical devices within the group.

City analysts believe this could be as much as 25p.

Simon says that royalty streams from the Abbott deal could be worth as much again over six or seven years.

Four of Biocompatibles' largest institutional shareholders representing 16% of the equity have signalled their approval of the deal. Dissenting shareholders will have a chance to vote against it at an extraordinary general meeting to be held at the Barbican on 23 April.

Simon is sceptical about shareholder opposition to the deal, as he has had no communication from dissenters. He said the deal would 'return a significant sum of capital to shareholders and continue to leverage Biocompatibles'.